ANZ Commercial Update

27th Sep, 2021 | Branch News 28th September 2021

In this article:
Changes introduced to simplify processes.

Please take note of some important updates regarding commercial and asset finance loan applications from ANZ. These changes have been introduced with the intention of simplifying the process for both brokers and their business customers seeking finance solutions.

For Asset-Finance applications:

Capacity to Service
Effective immediately, Companies, Trusts and Partnerships will be assessed on a business capacity to service (CTS) basis only. This needs to be evidenced by one year of accountant-prepared Profit and Loss Statements and Balance Sheets for the borrowing entity. Director’s or other parties’ Income Tax Returns are not required and should not be provided with the loan application unless ANZ specifically requests this.

If the capacity to service cannot be demonstrated based on the business CTS calculation, ANZ may consider ‘Aggregate Servicing’, where Director/ Spouse’s income may be considered. In these cases, you will be asked to provide:

  • Director’s and or related parties’ latest Personal Income Tax Return (please remove all TFNs and PRNs). Please do not provide Personal Income Tax Returns unless asked to do so.
  • Statement of Position (SoP) form for Director’s and/or related parties.
    Spousal or domestic partner privacy consent needs to be provided with the
  • SoP where the income and expenses outlined in the SoP include those of the spouse or domestic partner.

The SoP and Declaration of Spouse or Domestic Partner forms are attached and are also available on the Broker Hub.

To help in the process of assessing servicing accurately, please be sure to include all of the borrowing entities’ current commitments, either by inputting directly into the system (if online) and/or by providing a full and up-to-date Commitment Schedule for the borrowing entity.

Upfront Privacy Consent

Effective immediately, ANZ requires privacy consents to be collected upfront for all parties for all new loan submissions. This means that either an ANZ Declaration & Privacy Consent or Industry Standard Broker Privacy Consent form must be submitted with the asset finance loan application.

The settlement processes remain unchanged; an ANZ Declaration & Privacy Consent form is still required to be uploaded with executed Asset Finance loan documents. The requirement to provide a privacy consent form when submitting a loan application will not apply to inflight applications and a grace period of two weeks from today will apply.

Please ensure that any previous versions of forms held are deleted and that the new forms, attached and available on the Broker Hub, are used going forward.

For Commercial applications:

ANZ Business Credit Application Form
The ANZ Business Credit Application (BCA) form for commercial lending up to $1 million has been enhanced and simplified to make it easier for customers to understand and complete, saving them time when completing their application to borrow from ANZ. These enhancements to the BCA will create a faster time to decision for your customers, reducing the likelihood of errors that require re-work, which can slow down the process.

Some of the key enhancements include:

  • 12 pages down to 5 pages;
  • Written in plain English to help customers understand what information ANZ requires from them;
  • Ability to select one or multiple “use of funds” to explain the purpose of lending;
  • Removal of duplicated information that has already been obtained via conversations with you, the customer and other systems; and
  • A more compatible format that is not dependent on specific software to open.

Action required
The changes to the BCA form are effective immediately. To assist you with the changeover, ANZ will accept the old BCA form until 15 October 2021. Please delete all old versions of this form and ensure that only the latest version is used. The new BCA form is attached.

Redraw grandfathered for ANZ Business Loans
Effective immediately, Redraw will no longer be available for new ANZ Business Loans (ABL) or to existing ABL customers who have not already opted in for Redraw. However, this change will not remove Redraw for customers who already have it on their existing loan (subject to the terms and conditions) unless, and until, that loan is restructured.

The Business Offset account has also been updated so it is more in line with Redraw and to make it a better alternative for customers.

Please contact your Commercial BDM for more information.